Uber, Lyft and Sidecar all claim to possess $1 million “liability” insurance policies. This is intended to sound impressive and reassuring, but experts concur “ridesharing” insurance contains treacherous gaps in coverage.
For example, the period during which a TNC driver has the app turned on and he’s waiting to be pinged is now commonly known as “Period 1.” Though a new California law has wisely mandated TNCs provide primary coverage for Period 1 beginning July 1, 2015, and new hybrid insurance policies are available to cover this phase in a certain cities and states, TNCs continue to operate without properly insuring this phase of operations in most cities and states. Personal injury and wrongful death suits are currently being litigated in state courts around the country that will test the limits of the existing TNC policies. Taxicabs are required to carry expensive primary commercial auto liability insurance coverage costing between $5,000 and $6,000 per vehicle. TNCs are evading these costs to maximize profits.